Praoperative Expenses, Accounting - Auditing

[guna ch]

Dear Sir/s

Kindly any one advice me about what is preoperative expenses, is it equals to misc.exp/prelimenary exp. what is the treatment of preoperatravie exp.

Posts / Replies

[CA GOPALJI AGRAWAL]

These expenses might be incurred before commencement of business but in the nature of revenue exp. and has to be debited to Profit & Loss Account.